The financial demise of Detroit proved no surprise to those watching the news on a regular basis.

At one time America's fourth most populous city hosting
automakers General Motors, Ford and Chrysler, the Motor City has lost 63
percent of its population since 1950. Although there are some signs of
renewal in its inner city, downward trends have been obvious for
decades. Crime, government corruption, financial scandals plus
dysfunctional family life have all played their role in Detroit's slide
into bankruptcy.
But as The Economist recently pointed out beneath a recent headline: “It's not just Detroit
. American cities and states must promise less or face disaster”
(“America's Public Finances: The Unsteady States of America,” July
27, 2013).
The Financial Times added, “While Detroit is an extreme
example of urban decay, its predicament sheds light on similar problems
that afflict a number of US cities” (cover teaser for “Detroit: Descent Into Despair,” July 26). Time magazine revealed that Birmingham, New Orleans and
Philadelphia are among the foremost examples of cities with serious debt
obligations in the millions (Aug. 5). Primary blame has been assigned
to pensions, but society having gone awry in its fundamental
relationships between people must figure heavily in such severe
debt problems.
City governments wind up footing the costs of sin —both social and
monetary. And ultimately, individual taxpayers and private business pick
up the tab. As the Economist article concluded, “America's dynamic private sector is carrying on its back an unreformed Leviathan . Detroit is merely a symptom of that.” (Sources: The Economist, Financial Times, Time. )